Being competitive in the Experience Economy

Just listened to podcast from Phil McKinney. He spoke about the ‘experience economy’. Roughly its like why is going to DisneyLand a premium over the local ride park. How does Harely generate such an emotional response ? You pay a premium to get an experience, as opposed just to a fun night out.

Obviously much of this is just strong branding over a long period of time.

It also occured to me, you need to understand where the experience is in your industry. Then you need to go and own that experience.

I’ll reference ‘Circ de Soleil’ and the book Blue Ocean Strategy. BlueOcean talked about Circ-de-Soleil beat out circuses, by making the acts faceless, and removing the expensive actors (both animals and invididual stars). BlueOcean was able to control costs, focus on a better paying market charging a premium price. Less costs and premium prices – now that’s profit.

Here I am saying Circ-de-Soleil owned the experience. Its like running an art gallery perhaps, you dont want to be at the beck-and-call of the art industry, as to who will show in your gallery.

You need to own the experience – not the artists. You need to still make the same money, if you change artists, someone else signs your star. This also stops a star leveraging their value for more pay.

Another good example is say – ‘Kaos Comedy Restaurants’. Having the waiters be funny, tell jokes, and be rude – all part of the night. They owned the experience, and not the artists.

RedBubble seems to be generating lots of attention, and recently won a cool-company award. They own the platform and the community in which the art is shown. RedBubble aren’t in trouble if a single artist goes. You dont go to redbubble to get to just one artist.

I guess this is ultimately what will put Hoyts out of business. They don’t own the movies. No-one is loyal to Hoyts – we’ll go where the movies (the art) goes. OK – they still have some experience going to the cinema.

Hoyts whole ‘only at the movies’ campaign is rediculous. For the life of me – I cant understand why Hoyts dont market ‘better at the movies’ – ‘or more fun at the movies’, or do lifestyle marketing. The only edge/value they have left is the experience – yet they market about the movie itself.

I can even see a time, when a huge star disintermediates the whole movie industry, and sells direct over the web, DRM protected movies. Like the next star wars movie – ‘only on the web’. But that’s another story.

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